Building Real Estate Riches How to Invest in New Homes for Maximum Profit

Building Real Estate Riches How to Invest in New Homes for Maximum Profit CHRIS CONDON McGraw-Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0-07-145434-9 The material in this eBook also appears in the print version of this title: 0-07-143683-9. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at george_hoare@mcgraw-hill.com or (212) 904-4069. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior consent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms. THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the content of any information accessed through the work. Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise. DOI: 10.1036/0071454349 For more information about this title, click here. Contents Preface vii Acknowledgments ix Introduction xi Rental Investments xii Get Started Today! xiii 1. The Equity Strategy 1 Steps to Building Equity 3 The Cash Flow Strategy 3 So Where Do You Start? 4 Be Prepared to Ride It Out 7 2. Location, Location, Location 9 3. Cheap Dirt, Dirt Cheap 13 Picking a Lot 13 Now Look Down 16 Other Considerations 19 A Checklist 22 4. A Good Foundation 27 Slabs 28 Crawl Spaces 29 Basements 29 The Cost Effective Choice 30 5. Choosing a Style 33 6. Size Matters 39 iii Contents 7. Pick a Plan 43 Off-the-Shelf Plans 45 Determine Your Needs 46 8. How Nice Is Too Nice? 51 Is It a Good Investment? 53 9. Will It Appraise? 57 10. Am I Normal? 61 11. Go Shopping 63 Take Good Notes 65 12. A Borrowed Idea Is a Good Idea 69 13. Pump Up the Volume 75 14. Where Do You Live? 79 Master Bedroom and Bathroom 79 Kitchen and Family Room 80 15. Value Engineering 83 What Is Value Engineering 84 Master List of Cost Savers 84 Choose a Cost Effective Style 114 16. Do It Yourself 117 Sweat Equity Work 118 Work You Can Do During Construction 118 17. Decorate for Resale 123 Inside the House 123 Outside Decorating 125 18. Rental Properties 127 What Makes a Good Rental House? 127 Who Rents, and Why? 128 Property Management 129 Cash Flow 129 Set Up an LLC 129 19. Who’s Doing the Building? 131 Hiring a Builder 131 Acting as Your Own General Contractor 132 iv ... - tailieumienphi.vn